Tyco's Parts One Week Later (TYC, TEL, COV, GE, MMM)

As you will see, so far the markets have greeted the post-Tyco with a bit of a thud.  This is one we were a bit cautious on the valuations as being fully valued and perhaps even having a phantom premium just because of the break-up itself.  Here you’ll see the pieces:

The remaining Tyco International Ltd. (TYC-NYSE) after a 1:4 reversesplit is down marginally at $53.00.  It opened at $52.92 Monday andhave managed to close up north of $53.00 per share each day since.Unfortunately each close has been slightly lower than the day before.

Tyco Electronics (TEL-NYSE) is trading at $39.30, barely above the opening price on Monday at $39.20.  Shares have briefly traded over $40.00 since the spin-off, but based on the trading activity it looks like the specialist was more than happy to give shares away there.

Covidien Ltd. (COV-NYSE) is up an entire penny today at $42.21 and have traded down from roughly a $43.00 open (conflicting opening prices).  It looks like the specialist was more than eager to give away shares at $43.00.

In all fairness, shares of other conglomerates haven’t exactly been lighting up the road: General Electric (GE-NYSE) has seen shares stuck in a $38.00 to $38.79 range for the last week, and 3M (MMM-NYSE) has seen only an $87.13 to $88.40 range in the same time.

Jon C. Ogg
July 6, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.